Premarket: Stocks slide, yields up on ‘higher for longer’ rates view

Global stocks dipped on Tuesday, while bond yields and the dollar traded near multi-month highs as investors reined in expectations for more big U.S. interest rate cuts ahead of the U.S. election.

“We’re getting very close to the U.S. election and the data in the U.S. has been strong. So there is a question about how much the Fed can do,” said Peter Schaffrik, global macro strategist at RBC Capital Markets. Adding to the uncertainty was the looming U.S. election, where former Republican president Donald Trump and Democrat Vice President Kamala Harris are caught in a tight battle to win over some of the more competitive states ahead of the Nov. 5 voting day.

Benchmark 10-year Treasury yields rose 2 basis points to 4.21%, extending a sharp move higher and hitting their highest since late July. “It’s a small capital flight out of Japan,” said Naka Matsuzawa, Japan macro strategist at Nomura. More broadly, he said, markets were starting to speculate on a “red sweep,” delivering Republicans the White House and Congress in November.

China’s markets were pinned well below recent highs, while traders wait for more details and especially more government urgency and spending to support the ailing economy.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Premarket: Global stocks slide in reality check from big cap earningsGreenback gains as investors banked on a more moderate decline in U.S. interest rates
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: World stocks, Wall Street futures firm as more easing imminentInvestors turned their attention to China and Switzerland as the next central banks to add vim to the global economy
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Global stocks bask in China stimulus glowYen swings higher on Ishiba win
Source: globebusiness - 🏆 31. / 66 Read more »

Premarket: Stocks steady, oil gains amid muted market impact of Middle East tensionsEurope’s STOXX up about 0.25%, Asian shares rise despite conflict concerns
Source: globeandmail - 🏆 5. / 92 Read more »